In This Chapter
Understanding currency trading and the forex market
Getting a handle on currency pairs and prices
Tracking markets during a trading day
Looking at the technical details of currency trading
Identifying factors that influence forex rates
The foreign exchange (forex or FX) market has exploded onto the scene and is the hot new financial market. It has been around for years, but advances in electronic trading have made it available to individual traders on a scale unimaginable just a few years ago. Because it's relatively new, a lot of people are still in the dark when it comes to exactly what the currency market is: how it's organized, who's trading it, and what a trading day looks like when the market never closes. This chapter sheds a bit of light on these topics.
Currency trading is speculation, pure and simple. The securities you're speculating with are the currencies of various countries. ...